AUD/JPY awaits some directional momentum
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AUD/JPY awaits some directional momentum

After recovering from one-month lows around 92.115, AUD/JPY bulls have been attempting to take control of the market in the recent week. Two higher tops and two higher bottoms, made by buyers, led to an ascending channel. However, the pair is currently trading in a range below the 50-EMA. If buyers regain strength, another attack towards the moving average is likely. In the event, they succeed in overcoming this hurdle, the next resistance can be estimated around a solid resistance zone at 94.685, which is in the vicinity of the 200-EMA. If bullish sentiment keeps prevailing, a break above this roadblock will push the price up to the 95.089 mark.

Otherwise, should the 50-EMA hold resistance, the price could sideways between 93.908 and 93.201, waiting for a further directional indication. A sustained break below the range floor will pave the way toward the bottom of September 30 at 92.527.

Short-term momentum oscillators indicate a balance between market forces with no directional signal. RSI is floating in the neutral zone. Momentum is crawling in line with its 100-threshold. MACD bars and the signal line have been hanging out around zero, which shows that the market is waiting to gain momentum.